Win or lose, 'Shark Tank' appearance will boost BeatBox Beverages

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The owners of Austin-based startup BeatBox Beverages will appear on ABC's "Shark Tank" on Friday, Oct. 24.

Chad Swiatecki

Staff Writer- Austin Business Journal

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Whether the business moguls on ABC's "Shark Tank" like them or not, Austin boxed wine cocktail company BeatBox Beverages appears to have a winning formula.

The company's founders taped an appearance on the popular business-minded show in June and their episode is set to air on Friday, Oct. 24. Show rules prevent them from discussing results of the show prior to its airing, but the visibility of being in front of 7 million viewers is expected to cause a fourth quarter sales spike for the company that was already on a fast track.

BeatBox launched in early 2013 after friends Justin Fenchel and Brad Schultz decided to capitalize on the popularity of boxed wine with young adults by creating wine-based cocktails in boxed containers. The two graduates of the University of Texas' McCombs School of Business had no prior experience in the adult beverage industry but recruited fellow McCombs grad Aimy Steadman to be the COO and set up shop in an East Austin work space after raising some $60,000 in capital.

The company made its first retail deal with the Chevron filling station on Riverside Drive and Congress Avenue and racked up $53,000 in sales by the end of 2013. Its growth took off this year, with distribution deals and outsourcing production leading to $60,000 in the first quarter, $120,000 in the second quarter and sales of between $300,000 and $400,000 expected for the final quarter of 2014 because BeatBox is now available in 30 HEB Grocery Co. locations and 42 Spec's Wines, Spirits and Finer Foods locations.

Fenchel said any investment money the company may get from "Shark Tank" to ramp up the marketing process it uses to introduce the drinks to new markets and secure sales deals. He said some of the show hosts' business connections were definitely appealing, especially Mark Cuban's Texas connections and music festival investments, while Kevin O'Leary's experience in the mixed beverage industry presented obvious advantages as well.

Chad Swiatecki covers Austin's creative industries, health care and education.